Kogan.com (KGN) H2 2025 earnings summary

Executive summary

• FY 2025 saw strong growth, with active customers up 35% to 3.5 million and free cash flow up 40% to $32.4 million.

• Platform-based sales revenue rose 24.4% to $111.9 million, now representing over two-thirds of Kogan.com gross sales.

• Kogan.com was the main driver of group performance, while Mighty Ape faced operational challenges post-platform migration.

• Group delivered strong growth in FY25, with gross sales up 15.1% and revenue up 6.2% year-on-year.

• Free cash flow supported capital returns to shareholders.

Financial highlights

• Group gross sales grew 15% to $931 million; gross profit up 13% to $190 million, with gross margin improving by 2.3pp to 38.9%.

• Adjusted EBITDA was $36.8 million, down 8% year-on-year due to Mighty Ape's underperformance and higher costs.

• Net loss of $39.5 million due to a one-off, non-cash $46.3 million goodwill impairment related to Mighty Ape.

• Cash at year-end was $42.1 million, with no debt.

• Dividends paid totaled $12.4 million, up 90% year-on-year.

Outlook and guidance

• No formal earnings guidance for FY 2026; group adjusted EBITDA margin expected in the 6%-9% range, improving in the second half as Mighty Ape recovers.

• Platform-based sales expected to maintain strong contribution; focus on operational optimization and Mighty Ape turnaround.

• July 2025 trading: Kogan.com gross sales up 32.5%, group gross sales up 26.5%; Mighty Ape gross sales down 3.5%.

• Medium-term margin ambition is 8%-12%, with long-term target above 20% as platform-based sales grow and products reach break-even.